## Define the facility before comparing it
The [FCA bridging-loan glossary](https://handbook.fca.org.uk/glossary/G2949) defines a bridging loan for its rules as an MCD-exempt bridge or another regulated mortgage contract with a term of twelve months or less.
The calculator inputs include loan amount, monthly rate, term, arrangement fee, exit fee, broker fee, valuation fee and legal fee. Its workflow records the facility, term, rates and fees and says actual terms must be confirmed with the broker or lender.
## Build the full cost line
Use this calculation path in the [bridging loan cost calculator](/tools/bridging-loan-cost-calculator):
**Total finance cost = monthly interest x term + arrangement + exit + broker + valuation + legal fees**
For a controlled GBP 112,500 bridge at 1% monthly for six months, interest is GBP 6,750. A 2% arrangement fee is GBP 2,250 and a 1% exit fee is GBP 1,125. Those three amounts total GBP 10,125 before legal, valuation, broker and contingency costs.
The calculator records legal, valuation and broker fees separately from interest, arrangement and exit fees, so each input remains visible in the full cost line.
## Test the exit as evidence
For a regulated bridge expected to be repaid by a mainstream regulated mortgage, [FCA MCOB 11.6](https://handbook.fca.org.uk/handbook/MCOB/11/6.html) says the lender should be reasonably satisfied that a mainstream lender will be willing to enter the contract. The guidance points to evidence such as a guaranteed offer or agreement in principle, or the necessary income and expenditure information.
The same FCA section says a lender considering an extension to a regulated bridging-loan term must apply the responsible-lending assessment as if it were a new loan. The rule applies MCOB 11.6.2 as if the bridging loan were new.
## Run a delay sensitivity
At 1% monthly on GBP 112,500, each additional month adds GBP 1,125 interest before any extension fee. A three-month delay adds GBP 3,375 and raises the controlled subtotal from GBP 10,125 to GBP 13,500.
The FCA guidance identifies a guaranteed offer, an agreement in principle, or the necessary income and expenditure information as possible refinance evidence.
The [due diligence checklist](/tools/due-diligence-checklist) covers ownership, comparables, legal prompts, condition, EPC, tenancy, finance compatibility and document records. Its controlled example contains 20 checks: 15 green, 3 amber and 2 red. The workflow pauses the deal until both red checks clear and converts amber checks into conditions or price adjustments. It also includes document records for evidence and decisions made during the property review.